DeVito v. Rhode Island Solid Waste Management Corp.

770 F. Supp. 775, 33 ERC (BNA) 2068, 1991 U.S. Dist. LEXIS 10341
CourtDistrict Court, D. Rhode Island
DecidedJuly 22, 1991
DocketCiv. A. No. 91-0307-T
StatusPublished
Cited by4 cases

This text of 770 F. Supp. 775 (DeVito v. Rhode Island Solid Waste Management Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
DeVito v. Rhode Island Solid Waste Management Corp., 770 F. Supp. 775, 33 ERC (BNA) 2068, 1991 U.S. Dist. LEXIS 10341 (D.R.I. 1991).

Opinion

MEMORANDUM AND ORDER

TORRES, District Judge.

This is an action to declare void a regulation of the Rhode Island Solid Waste Management Corporation (“RISWMC”) requiring that all solid waste originating or collected within the State of Rhode Island be disposed of at state-licensed facilities (i.e. facilities in Rhode Island) and to enjoin RISWMC from enforcing that requirement. Stephen D. DeVito, Jr. Trucking, Inc. (“DeVito”) contends that the regulation violates the Commerce Clause of the United States Constitution, Article I, § 8, Clause 3. The case is presently before the Court for decision on the plaintiffs motion for a preliminary injunction.

FACTS

RISWMC is a public corporation created by an act of the Rhode Island General Assembly. See R.I.Gen.Laws § 23-19-6 (1989). Although not a department of state government, RISWMC has broad powers and responsibilities regarding regulation of the collection, transportation and disposal of solid waste in Rhode Island. Pursuant to those powers and responsibilities, it operates a facility known as the Central Landfill (“CLF”) which, for all practical purposes, is the only licensed facility in Rhode Island for the disposal of commercially generated solid waste.1

DeVito is a Massachusetts corporation engaged in the business of hauling solid waste. DeVito does not ultimately dispose of the waste it collects, but a significant portion of its business consists of making arrangements to dispose of that waste at licensed disposal facilities, a service that is included in the fees DeVito charges its customers.

Until June 3, 1991, DeVito transported approximately 400 tons per day of solid waste generated in Rhode Island to licensed waste-to-energy facilities located in Massachusetts and Maine where it was burned to produce electricity. The “tipping” fees charged by those facilities for acceptance of the solid waste were considerably less than the $49 per ton charged for commercial waste by RISWMC at CLF.2 By passing a portion of that savings on to its customers, DeVito was able to attract a significant amount of business from Rhode Island companies.

On May 22, 1991, RISWMC adopted a resolution directing that, effective June 1, 1991, all solid waste originating or collected in Rhode Island be disposed of at facilities licensed by the Rhode Island Department of Environmental Management (“DEM”). On June 3, 1991, RISWMC adopted an emergency resolution promulgating flow control regulations formalizing that requirement and providing for penalties [778]*778against those delivering solid waste for disposal at facilities not licensed by DEM and designated by RISWMC. Rhode Island Department of Environmental Management, Rhode Island Solid Waste Management Corporation, Emergency Flow Control Regulations (June 3, 1991). Since DEM has no authority to license out-of-state facilities, the effect of that requirement is to totally prevent solid waste from being transported out of Rhode Island for disposal.

PRELIMINARY INJUNCTION STANDARD

One of the principal purposes of a preliminary injunction is to preserve the status quo pending ultimate resolution of the case. Tri-State Generation and Transmission Ass’n v. Shoshone River Power, Inc., 805 F.2d 351, 355 (10th Cir.1986). However, a preliminary injunction is a drastic form of relief because it affects the rights of a party before that party has had an adequate opportunity to develop and present the merits of its case. Consequently, courts have devised a rather rigorous standard that must be satisfied before such relief is granted. That standard is well established. It requires the party seeking the injunction to demonstrate:

(1) That it does not have an adequate remedy at law and will suffer irreparable harm before the case can be litigated on the merits if the injunction is not granted;

(2) That such harm outweighs any harm that the adverse party will suffer if the injunction is granted;

(3) That it is likely to ultimately succeed on the merits of its claim; and

(4) That the requested injunction will not adversely affect the public interest.

Collazo Rivera v. Torres Gaztambide, 812 F.2d 258, 259 (1st Cir.1987); Planned Parenthood League of Mass. v. Bellotti, 641 F.2d 1006, 1009 (1st Cir.1981).

DISCUSSION

I. Irreparable Harm to Plaintiff

Based on the evidence currently before it, the Court finds that RISWMC’s export ban will likely cause DeVito’s business to fail before a trial is held. Approximately 50% of DeVito’s gross annual revenue is derived from hauling Rhode Island waste to out-of-state facilities for disposal. Since waste disposal is a particularly profitable part of DeVito’s business and DeVito’s ability to attract it is based largely on the favorable “tipping” fees obtained at out-of-state facilities, the ban undoubtedly will result in the loss of that business. Without that business, it is unlikely that DeVito will be able to meet the overhead costs associated with the fleet of equipment it purchased to transport the Rhode Island waste.

Those conclusions are confirmed by the fact that during the short time the ban has been effect, DeVito has experienced significant declines in gross income which have necessitated laying off of some of its employees. DeVito estimates that its business cannot continue to operate at current levels for more than six months.

That prospect is sufficient to establish irreparable harm. Because the failure of a business constitutes a loss that is difficult to measure, money damages generally cannot provide an adequate remedy. Atwood Turnkey Drilling, Inc. v. Petroleo Brasileiro, S.A., 875 F.2d 1174, 1179 (5th Cir.1989), cert. denied, — U.S.-, 110 S.Ct. 1124, 107 L.Ed.2d 1030 (1990); John B. Hull, Inc. v. Waterbury Petroleum Prods., Inc., 588 F.2d 24 (2d 1978), cert. denied, 440 U.S. 960, 99 S.Ct. 1502, 59 L.Ed.2d 773 (1979). Thus, the First Circuit has stated “[t]he threat of substantial damage to [plaintiff’s] hard-won business and reputation ma[k]e out a sufficient showing of irreparable harm to warrant immediate redress.” Hypotherm Inc. v. Precision Prods., Inc., 832 F.2d 697, 700 (1st Cir.1987). Even when the monetary loss can be measured, courts have held that the threatened failure of a business warrants injunctive relief. See, e.g., Art-Metal U.S.A. v. Solomon, 473 F.Supp. 1, 4 (D.D.C.1978).

II. Irreparable Harm to Defendants

The relative harm to RISWMC if an injunction is granted is far less than that [779]*779facing DeVito.

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